Dear Galleon Groupies

From: Bob Wood
Sent: Fri 10/9/2009 5:06 PM
Subject: Galleon Group September 2009 Commentary and Performance Reviews
Please find attached Galleon’s monthly investment letter together with the package of the September performance reports. All of the funds recorded solid returns for the month as we continue to see evidence that we are moving into a stock pickers market. If you have any questions or wish additional information, please do not hesitate to contact me.
Robert Wood
Managing Director, Business Development
The Galleon Group
590 Madison Avenue, 34th Floor

To all DB readers.
Please to understand that myself, and our fund, has come under very serious attack, in fact, I find myself in jail.
To my trusted investors I can assure you, according to the laws of Sri Lanka, insider trading is not a crime. It is simply the right to perfect information. I will fight, on your behalf, for what I see as a terrible injustice.
Raj
ps
Bernie keeps looking at me in a strange way. I keep telling him I am sore from last night.

a digital intstrument is not a real document, the real document when a small amount of heat was applied, revealed the following coded message:persian blue nova likes curry scented mohair
-guy who does like like getting his tie caught in a shredder

Bess and good bloggers are supposed to cut and paste and add commentary. They’re aggregating and editing and serving it on a plate, sometimes with a bent. Bess can be pretty bent, which is why I read her. Bess also cultivates friends/sources so she breaks some stories. This is what a journalist does. Fact is, investigative journalism is largely being replaced by straight reportage of leaks. Then Teri Buhl’s posts get shit on, but who else is digging into that pile?

Why don’t reporters and their sources don’t get in trouble when they publish a story that contains material non-public information? For instance, the Journal reported last week that Brocade Communications, had put itself up for sale and the stock subsequently moved up significantly. This story was based on “sources familiar with the matter.” How is this different from Raj’s and his sources involved in the restructuring at AMD? End game for both is/was to make money – Raj to trade and for Journal to drive viewership.

@30 um? Really? Is this rhetorical?
1) Trading on material, non-public information may be illegal, but reporting it is not.
2) Pretty much by definition, if some information appears in the WSJ it is now public.
3) Amendment I generally inhibits prosecuting the press for publishing factual information.

Insider trading should be completely legal. I see this whole thing a big waste of money. If any company wants to go public, then the company itself should build their own credit for not hiding the critical information to the investors, not SEC or any other government regulatory. If any one want to play this stock game, he/she should be fully aware that it is his/her responsibility to collect the information, not matter material or non-material. Why can’t people trade the stock of their own company? It will make market more efficient and facilitate the management to make the better decision for company’s operation instead of screwing up other investors.
Insider trading just gives people a false hope that the whole game is “fair”, which is not whatsoever. Plus it has so many grey area and so hard to enforce it. I can’t see any justified reason for this stupid law.

Greg zuckerman at the WSJ clearly lifted returns on Galleon’s Diversified fund from Dealbreaker yesterday in his story called ‘Trader Is known for Speed, Smarts.’
It’s shameful that the WSJ let’s its reporters piggyback off of Bess’s first to the story reporting.
Zuckerman seems to think since this Oct letter came out the firm actually has another $300m in AUM. He reports total aum is $3.7bn , while this letter from the firm states it $3.4bn. If that new AUM is even correct do think the investors will want a 30-day money back guarantee?

Guest@#37…
“If any one want to play this stock game, he/she should be fully aware that it is his/her responsibility to collect the information, not matter material or non-material.”
“go public” means publically held, which means owned by the public, which in turn means owned by many entities, including pension funds, mom & pop, Main Street, insiders, outsiders, et. al.
As TGFD sees it, insider-trading laws are there to offer some type of protection to all the outsiders from all the insiders. Too bad the protection is so weak.
It seems that you would choose to remove the protection, however feeble it may be.
The Guy from Delaware

I checked from the Penn alum directory:
Raj Rajanatram
Anil Kumar
Rajiv Goel
are all 1983 MBAs.
Have to admit, the amount of professional success these guys had (director at McKinsey, MD at Intel Capital and of course Raj Raj) is pretty incredible from a random sample of b-school buds.

The more frequently you monitor your portfolio, the more likely you are to observe a loss. This is likely to cause short-sighted decisions and could hurt your investment performance. If you are checking your portfolio more than once per quarter, you’re doing it too much.